Obama Fights Republicans On Tax Subsidies For Oil Companies

President Obama wants to end tax subsidies for the oil industry but is getting pushback from Republicans who want to blame the president for high gas prices.

“When oil companies are making huge profits and you’re struggling at the pump, and we’re scouring the federal budget for spending we can afford to do without, these tax giveaways aren’t right,” Obama said in his weekly radio and Internet address. “They aren’t smart. And we need to end them.”

Oil companies posted sharply higher first-quarter earnings this week with oil prices above $100 a barrel on unrest in the Middle East and growing global demand for energy.

Leading the way, Exxon Mobil, the world’s most valuable publicly listed company, beat analysts’ forecasts by posting a 69 percent rise in earnings to $10.65 billion, its biggest profit since the third quarter of 2008.

Money from these tax breaks would be better invested in alternative energy development.